I read tfb differently than you. He seems to say that you can make 4% on your purchases, not 4% annually on your balance. He seems to be suggesting you can get 4% back on purchases with some credit cards. Exactly what he is talking about is unclear.

OK, this is just 4% on just $5,000. Here's how to do it: Spend $5,000 a month on a cash-back credit card. If that card gives 1% cash back,then than will earn you 12% for the year. Get with the program! Isn't everybody doing this?

Joe S. wrote:I read tfb differently than you. He seems to say that you can make 4% on your purchases, not 4% annually on your balance. He seems to be suggesting you can get 4% back on purchases with some credit cards. Exactly what he is talking about is unclear.

Yes, when you add up those options, a single person can have nearly $20k earning 4% or above, FDIC insured. Double it to $40k for a married couple. Maybe $20k/$40k is not up to a millionaire's standard but for middle class families we often hear about who don't have much savings, it's plenty. It's not true you must take more risk in order to earn a higher return.

Yes, when you add up those options, a single person can have nearly $20k earning 4% or above, FDIC insured. Double it to $40k for a married couple. Maybe $20k/$40k is not up to a millionaire's standard but for middle class families we often hear about who don't have much savings, it's plenty. It's not true you must take more risk in order to earn a higher return.

Thanks! That Mango Direct appears promising. From what I can infer, the prepaid card is a requirement, and the fees for it would be about $5/month (unless I deposit $500/month - why would I want to do that?). The interest on the $5k would be $300, and the net would be $240. Not bad at all, assuming that I understood the set up properly. Did I?

I did not really see anything else mentioned in this thread (even the BBVA Compass) that would earn 4% - did I miss something?

Yes, when you add up those options, a single person can have nearly $20k earning 4% or above, FDIC insured. Double it to $40k for a married couple. Maybe $20k/$40k is not up to a millionaire's standard but for middle class families we often hear about who don't have much savings, it's plenty. It's not true you must take more risk in order to earn a higher return.

Thanks! That Mango Direct appears promising. From what I can infer, the prepaid card is a requirement, and the fees for it would be about $5/month...
I did not really see anything else mentioned in this thread (even the BBVA Compass) that would earn 4% - did I miss something?
- Porcupine

I may point out that you are not getting 4%. After subtracting the $5/month fee, you are getting at most 3.2% interest. You then have to calculate how much the other fees will ding you. It may still be a good deal, but it's not 4% interest.

You also have to watch out for teaser rates. Some of these companies will offer a high rate, then drop it after a couple of months. They may also add new fees. They often play bait and switch games, where the return on your money drops in the future. You can always change banks and pay a withdrawal fee.

The problem as I see it is that they can't stay solvent offering a true interest rate of 4%, so I highly expect there has to be some trick, otherwise they will go bankrupt.

OK, this is just 4% on just $5,000. Here's how to do it: Spend $5,000 a month on a cash-back credit card. If that card gives 1% cash back,then than will earn you 12% for the year. Get with the program! Isn't everybody doing this?

Wow! I was missing this!

A discount on your spending is the same as a return on your investments?

I'll have to go back and read Andy Tobias on the ROI of buying tuna by the case.

Depending on what the money in question is going to be used for, I'd be willing to be that the TSM will earn 2% in price appreciation and 2% in dividend growth for a total return of 4% next year. Wouldn't recommend that for short-term savings goals but if the point is that you'd like 4% growth I think over the long haul the TSM will get you there. Dips and dives along the way, but 4% annualized isn't asking too much.

Yes, when you add up those options, a single person can have nearly $20k earning 4% or above, FDIC insured. Double it to $40k for a married couple. Maybe $20k/$40k is not up to a millionaire's standard but for middle class families we often hear about who don't have much savings, it's plenty. It's not true you must take more risk in order to earn a higher return.

Thanks! That Mango Direct appears promising. From what I can infer, the prepaid card is a requirement, and the fees for it would be about $5/month...
I did not really see anything else mentioned in this thread (even the BBVA Compass) that would earn 4% - did I miss something?
- Porcupine

I may point out that you are not getting 4%. After subtracting the $5/month fee, you are getting at most 3.2% interest. You then have to calculate how much the other fees will ding you. It may still be a good deal, but it's not 4% interest.

Actually it's around 4.8% after all of the fees. There's a pretty detailed thread about it. Search the forum for Mango.

This, of course, comes under the heading of "dumb luck". Inflation had subsided, interest rates were still high, my company had payroll deduction to automatically buy them, and the initial deal was something insane like 6% plus something for inflation. (It did not seem insane at the time.)

Joe S. wrote:
I may point out that you are not getting 4%. After subtracting the $5/month fee, you are getting at most 3.2% interest. You then have to calculate how much the other fees will ding you. It may still be a good deal, but it's not 4% interest.

Actually it's around 4.8% after all of the fees. There's a pretty detailed thread about it. Search the forum for Mango.

After spending 12 hours searching the Mango forums, it's actually 11.7%. There's a pretty detailed thread about it. Search the forum for Mango. You should find it after a few hours of search. I could provide a link, but it's more fun to find it on your own...